3 Sep 2013 13:31
Cathay International Holdings Limited
("Cathay" or the "Company")
Lansenand Haotian Sign Plant Extract Supply Agreement
Further Synergies Leveraged between Key Portfolio Companies
Hong Kong, 3 September 2013 - Cathay International Holdings Ltd. (LSE: CTI.L), an investment holding company and a leading investor in the growing healthcare sector in the People's Republic of China ("PRC"), today announces that Liwah Zhiti, an indirect subsidiary of Cathay under the Lansen Group, has signed an Entrusted Manufacturing Framework Agreement for the supply of plant extract products with Yangling Haotian and Xian Haotian, indirect wholly-owned subsidiaries of Cathay under the Haotian Group.
Today's transaction is in line with a key management objective stated in the Company's recent interim results to create further synergies across the Group. The agreement leverages key synergies between Haotian's and Lansen's plant extract business in manufacturing, R&D and marketing.
Under the terms of the agreement, which is deemed to be in the ordinary course of business for Cathay International Holdings, Yangling Haotian and Xian Haotian will supply plant extract products on an order by order basis to Liwah Zhiti. The selling price per unit will be determined by reference to the prevailing market prices for the products and the agreement is valid until December 2014.
The maximum value of the transactions contemplated under the agreement will be approximately USD9.2 million (RMB56 million), of which the annual capped value for the year ending 31 December 2013 will be approximately USD4.6 million (RMB28 million) and for the year ending 31 December 2014, approximately USD4.6 million (RMB28 million).
Mr. Lee Jin-Yi, Chief Executive Officer of Cathay commented:"A key aim of Cathay International Holdings, stated at the time of our interim results, is to create further synergies across our portfolio companies. Today's agreement is an example of one of many potential cross-company transactions which will lead to greater efficiencies and enhanced benefits for the Group's operations."
-ENDS-
For further enquiries, please contact:
Cathay International Holdings Limited
Eric Siu (Finance Director) Tel: +852 2828 9289
Patrick Sung (Director and Controller)
Consilium Strategic Communications
Mary-Jane Elliott/ Amber Bielecka / Lindsey Neville Tel: +44 (0) 207 920 2330
About Cathay
Cathay International Holdings Limited (LSE: CTI.L) is a main market listed investment holding company and a leading investor in the growing healthcare sector in the People's Republic of China ("PRC"). Taking advantage of the strong and growing domestic demand for high quality healthcare products in China, Cathay aims to identify investment opportunities with emphasis on high growth healthcare markets and build them into market sector leaders, with a clear exit strategy. Cathay has already demonstrated a strong track record of identifying high-growth potential investment opportunities in this area including: Lansen Group, China's leading specialty pharmaceutical company focused on rheumatology, Haotian Group, a company engaged in the manufacture, marketing and sale of key active ingredients for healthcare products, including dietary supplement inositol and Botai, a company engaged in the development of pharmaceutical products and bringing these to the growing Chinese market.
The Group employs more than 2,000 people across the PRC, including over 30 specialist corporate and business development staff based at the holding company's offices in Hong Kong and Shenzhen. Cathay also has a private equity investment arm focused on minority investment opportunities and a hotel investment.
For more information please visit the Company's website: www.cathay-intl.com.hk
About Ningbo Liwah Plant Extraction Technology Limited ("Liwah Zhiti")
Liwah Zhiti is primarily engaged in the production of western pharmaceuticals in the treatment of rheumatic diseases, production and sale of OTC pharmaceuticals and the sale of modern Chinese medicine extracts. Liwah Zhiti is a company incorporated in the PRC and an indirect subsidiary of Cathay under the Lansen Group.
About Yangling Haotian Biotechnology Co. Limited ("Yangling Haotian")
Yangling Haotian is primarily engaged in the manufacture of plant extracts used as various key active ingredients in food, beverages, cosmetics, dietary supplements and healthcare products. Yangling Haotian is a company incorporated in the PRC and an indirect wholly-owned subsidiary of Cathay under the Haotian Group.
About Xian Haotian Bio-engineering Technology Co. Limited ("Xian Haotian")
Xian Haotian is primarily engaged in the marketing and sale of plant extracts used as various key active ingredients in food, beverages, cosmetics, dietary supplements and healthcare products. Xian Haotian is a company incorporated in the PRC and an indirect wholly-owned subsidiary of Cathay under the Haotian Group.